Spruce Point conducts a forensic financial and accounting review on Axon Enterprise, Inc. he maker of the Taser (Nasdaq: AAXN)

After conducting a forensic financial and accounting review, Spruce Point believes Axon Enterprise, Inc. (Nasdaq: AAXN), the maker of the Taser stun gun, will shock investors with significant earnings disappointment and increasing cash burn as it fails to scale beyond these niche businesses. Based on our investigation, we forecast 40% to 60% downside risk, or $27.50 - $40.00 per share.

The report highlights several key concerns with the company, including:

  • We view the Company as a SaaS-driven growth story, which is highly likely to disappoint investors
  • Evidence of aggressive revenue recognition 
  • Evidence of the Company’s undisclosed dependence on China

Article Link: https://www.sprucepointcap.com/research/axon-enterprises-inc

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